Why Is Cyber Insurance A Necessity For Business Owners?

Cybercrime will cost $6 trillion by 2021. The number of such attacks is increasing – and they are getting more sophisticated in nature. The criminals are now able to bypass even robust security measures.

This is a clear indication as to why business owners must invest in cyber security insurance.

If their system gets attacked, they will lose money. Depending on the severity of this attack, it can cost them huge to a point that they may even have to shut down the business. There are numerous such examples where the company had to shut following the cyber-attack.

More, there are several indirect costs attached to cyber-attack. For instance, if there’s an incident of data breach wherein your customers’ data has been leaked, those customers may decide to sue you for this. Further, incidents such as these hurt the company’s reputation and diminish public’s trust in that brand. This leads to poor revenue.

Business Insurance · Why Is Cyber Insurance A Necessity For Business Owners?

So, cyber attacks should be looked at with more than just direct costs in mind. Yes, it will interrupt your business. Yes, it will cost you a huge sum. But there are also many indirect costs whose effect may last very long.

This is why cyber security insurance is a necessity – just like a public liability insurance policy – for business owners. And this is just for every kind of business that has some form of digital footprints. Because there is a misconception that only those who have an extensive online presence and deal with sensitive customer data should buy this cyber risk insurance. In reality, even if you collect just the basic details of people (like their names and emails), the said insurance is needed.

Connect with an insurance broker and discuss with them your cyber risks and what kind of coverage you should get. Spend just as much time and efforts in finding and comparing cyber security insurance plans as you do in finding public liability insurance and other business policies. Talk to an insurance broker today.

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